NASDAQ 100 Price Forecast – NASDAQ 100 Continues to Power Higher

NASDAQ 100 Technical Analysis

You can see that we have rallied rather significantly during the trading session here on Monday in the early hours as we are breaking above the 18,000 level. At this point, I think we’ve got a situation where traders are just simply buying every dip that they get. We are above the 18,000 level and that is an area that I think does in fact continue to be a major influence. Now the question of course is whether or not we can break above here and go looking to the 18,400 level. Underneath we have plenty of buyers going back multiple times. The 17,800 level has offered support. The 50 day EMA of course will attract a lot of people also, so make sure to keep that in mind.

In general, I do believe that we have a scenario where traders continue to look at this as a way to take advantage of what has been a major liquidity thrust. Short-term pullbacks, I think, are very possible this week with central banks around the world making interest rate decisions, especially with the Federal Reserve doing so. And that being the case, I think you have to look at this through the prism of potential pullbacks offering the opportunity that you’re looking for.

I think 16,950 underneath is a major floor, and we will have to look at that as a potential area of extreme value that longer term traders will probably come into as well. In the meantime, it just looks like you are going to see this market try to do everything it can to continue the same action that we have seen over the last several months.

At this point, it is almost as we are in the midst of a massive “feedback loop”, as traders are simply being forced to chase performance. I don’t really see this changing easily, so keep this in mind when trading this index. It will be noisy, but positive overall.

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